HI -- Well the wallpaper was just done so there is no changing that , soooo I think you should paint the rest of that wall the same white as the white background of the wallpaper and paint fireplace mantel too. Then have two small matching cabinets painted the blue from the paper or the leaf color placed on each side of the fireplace. . Then have white or glass shelves above , maybe three is best . Now the rest of the room painted the exact color of your sofa . Because the room looks small I think it would look best to have the sofa blend into the walls color wise. Now just keep some of your room accents in the blue color but not too much. Remember not to clutter the shelves and if you don't want the shelves then have a large painting on each side and have a big round mirror over the mantel and keep the small items off the mantel and onto the side cabinets .

Please, please, please, don't paint any of the wood. You have a beautiful setting for mid century modern décor. I can agree with removing the carpet from the stairs, however I would just want to add a jute floor covering for the stairs after. The light fixtures should probably both be changed. You even have a lovely roomy space in your foyer. I always recommend starting with the foundation of the room, which is the floor covering. Kilim, ikat, Persian or Oriental would be my choice. I would think minimalist would be very fitting in this space.

Wow, I didn't expect so many responses, thank you so much for your time and ideas. I do know that the art is wrong but had to put something up from our last house while we settle in. I do find the fireplace a bit un-friendly and so I would consider changing the colour of it even just the border of it like one of the photos shows. I'm not keen on the small computer cabinet or the ladder shelving I have to admit. I was thinking more of putting 3 full width cherry wood shelves, bottom one being wider and desk height, changing the light fittings to down lights and maybe having a wallpaper or painted backdrop behind the shelves?? I realise I would have to get rid of or change the wallpaper on the other wall and change the curtains too. I take your point, many of you said it, about the curtains needing to fall straight, but I will need a wider pole to do that. Again many thanks, AnnaMarie ps we are in Ireland now but lived in australia for many years and that picture over the mantle is of an old aussie shed with moon light on it.

I'm in a similar predicament so went feature paint rather than wallpaper.. Similar fireplace too! Although I currently have navy sofa too I'm stuck on what color for a new one!